Frontiers in Psychology | www.frontiersin.org 1 May 2022 | Volume 13 | Article 858630 ORIGINAL RESEARCH published: 19 May 2022 doi: 10.3389/fpsyg.2022.858630 Edited by: Asyraf Afthanorhan, Sultan Zainal Abidin University, Malaysia Reviewed by: Rajennd Muniady, New Era University College, Malaysia Fakhrul Anwar Zainol, Sultan Zainal Abidin University, Malaysia Saif Ullah, Jiangsu University, China *Correspondence: Mohamad Fazli Sabri fazli@upm.edu.my Specialty section: This article was submitted to Developmental Psychology, a section of the journal Frontiers in Psychology Received: 20 January 2022 Accepted: 21 March 2022 Published: 19 May 2022 Citation: Sabri MF, Wahab R, Mahdzan NS, Magli AS and Rahim HA (2022) Mediating Effect of Financial Behaviour on the Relationship Between Perceived Financial Wellbeing and Its Factors Among Low-Income Young Adults in Malaysia. Front. Psychol. 13:858630. doi: 10.3389/fpsyg.2022.858630 Mediating Effect of Financial Behaviour on the Relationship Between Perceived Financial Wellbeing and Its Factors Among Low-Income Young Adults in Malaysia Mohamad Fazli Sabri 1 *, Rozita Wahab 2 , Nurul Shahnaz Mahdzan 3 , Amirah Shazana Magli 1 and Husniyah Abd Rahim 1 1 Department of Resource Management and Consumer Studies, Faculty of Human Ecology, Universiti Putra Malaysia, Serdang, Malaysia, 2 Department of Human Development and Family Studies, Faculty of Human Ecology, Universiti Putra Malaysia, Serdang, Malaysia, 3 Department of Finance, Faculty of Business and Economics, University of Malaya, Kuala Lumpur, Malaysia The main objective of this study is to investigate the associations between fnancial knowledge, locus of control (LOC) and perceived fnancial wellbeing (FWB) with fnancial behaviour as a mediator among young adults from low-income households in Malaysia, controlling for education and income. The sample of this study consisted of 482 young adults from fve different zones in Peninsular and East Malaysia, which were selected using a multi-stage sampling technique. Data were collected using a set of questionnaire-based surveys. The data were then analysed using Covariance Based Structural Equation Modelling (SEM). The study found that fnancial knowledge and external LOC as well as fnancial behaviour were signifcantly correlated with the perceived FWB of low-income young adults in Malaysia. The results also revealed that fnancial behaviour mediates the infuence by fnancial knowledge and internal LOC on perceived FWB controlling for education and income. The fndings of this study provide insights into the factors of perceived FWB of low-income young adults in Peninsular and East Malaysia. Policymakers, government and non-government organisations may utilise this study to develop new policies, fnancial programmes or campaigns to enhance the FWB of low-income young adults in Malaysia. Keywords: fnancial wellbeing, fnancial behaviour, fnancial knowledge, locus of control, young adults, mediating effect INTRODUCTION Today, a number of young adults are under threat in terms of their economic and fnancial wellbeing (hereafer, FWB). Consumerism tempts them to spend more money, whereby online shopping platforms ofer a simple way to purchase, and the credit card system provides them with a convenient and transparent means of borrowing money. Credit cards are a necessity